Which is the largest of the four information technology pathways?

A company issued 5%, 20-year bonds with a face amount of $60 million. The market yield for bonds of similar risk and maturity is

Lesechka [4]

Answer:

Total $53.0656 (millions)

Explanation:

We will need to add the present value of the coupon payment

and the present value of the maturity date

present value of the annuity:

$C \times \frac{1-(1+r)^{-time} }{rate} = PV\\$

C= 60 million x 5% /2 1.5

time= 20 years 2 payment per year = 40

rate = 6% annual = 0.06/2 = 0.03 semiannually

$1.5 \times \frac{1-(1+0.03)^{-40} }{0.03} = PV\\$

PV $34.6722

present value of the bonds:

$\frac{Maturity}{(1 + rate)^{time} } = PV$

Maturity 60

time 40

rate 0.03

$\frac{60}{(1 + 0.03)^{40} } = PV$

PV $18.3934

The value of the bond will be the sum of both

PV c $34.6722

PV m $18.3934

Total $53.0656

7 0

3 years ago

Masse Corporation uses part G18 in one of its products.

DaniilM [7]

Answer:

Masse Corporation

1. The effect on the company's total net operating income of buying part G18 from the supplier rather than continuing to make it inside the company is an additional cost of $47,100.

2. Masse Corporation should continue to produce the part in-house. The "Make" alternative is better.

Explanation:

a) Data and Calculations:

Units of part G18 needed yearly = 17,100

Costs of production:

Direct materials $4.30

Direct labor 5.00

Variable overhead 8.00

Supervisor's salary 8.70

Total variable costs= $26 * 17,100 = $444,600

Avoidable general overhead cost = $23,100

Total avoidable costs = $467,100

Outside supplier's offered price for the part = $32 each

Total cost for the outside supply = $547,200 ($32 * 17,100)

Unavoidable fixed costs:

Depreciation of special equipment 9.30

Allocated general overhead 6.30 * 17,100 = $107,730

Unavoidable cost = $84,630 ($107,730 - $23,100)

b) The effect on the company's total net operating income of buying part G18 from the supplier rather than continuing to make it inside the company is an additional cost of $47,100 ($547,200 - $467,100 - $33,000).

4 0

3 years ago

Steelcase Inc. is one of the largest manufacturers of office furniture in the United States. In Grand Rapids, Michigan, it produ

melisa1 [442]

Answer:

Total Flexible Budgets for 12,000, 15,000, and 18,000 units is $ 556,000 $ 643,000 and $830,000

Explanation:

Steelcase Inc.

Assembly Department:

Steel per filing cabinet ............................................. 55 pounds

Direct labor per filing cabinet ...................................... 20 minutes

Supervisor salaries ................................................ $180,000 per month

Depreciation ...................................................... $28,000 per month

Direct labor rate................................................... $21 per hour

Steel cost ......................................................... $0.40 per pound

Steelcase Inc.

Flexible budget 

For the month of August 2014.

Units: 12000 15000 18000

Steel for filing cabinet 660,000 825000 990,000 pounds

Steel cost $264,000 330,000 $ 396,000

Direct labor Hrs 4,000 5,000 6,000

Direct labor Cost $84,000 $105,000 $ 126,000

Supervisor salaries $180,000 $180,000 $180,000

Depreciation $28,000 $28,000 $28,000

Total $ 556,000 $ 643,000 $830,000 

First we find the Steel for filing cabinets in pounds . Then we multiply with the rate to find the steel cost.

Similarly we find the direct labor hours and then the direct labor cost.

We assume that the supervisor salaries and depreciation are fixed.

4 0

3 years ago

What is classical view

gregori [183]

Category is the default view in all modern versions of Windows. Selecting "Large icons" or "Small icons" is the equivalent of the classic list item view from Windows XP. ... The classic Windows XP list item view is now used by the Control Panel, regardless of whether you use Windows 7, Windows 8.1 or Windows 10

5 0

3 years ago

if a firm declared that it wanted to develop a strategic relationship, but was unwilling to commit funds or any effort to make i

Contact [7]

Answer:

Credible commitments

Explanation:

4 0

3 years ago